70% of the US economy depends on consumption. But most Americans don’t have the money to consume.
Inflation pressures notwithstanding, economic indicators right now are quite robust, despite political uncertainty and tariffs. 70% of the US economy depends on consumption, and consumption is still strong, but there is a troubling trend that is little discussed.
The top 20% of American income earners now represent over half of all consumption, and consumer goods manufacturers are responding with a decided shift upmarket. Luxury SUVs have replaced simple cars and light trucks for automakers, for example, but no one knows what the implications are for the economy if this trend continues.
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